stoppayingrentnh.com 0 Report post Posted June 17, 2012 Wow...I have been getting some great response since i have been saying i am with a management company.After 1 week i got my first yes.In a high end neighborhood,but i will go for it.Haven't fully checked,3 different sellers are asking 415-425k in the same neighborhood,and there lots are smaller.18k my seller,10k others.I told seller i will check and get back to him tonight.Seller says he can be flexible on price,he's been trying to sell for a year. Here's what i negotiated ,3 years option,2k per month which is 500 less average,50% rent credit.My only problem ,seller wants a bit of the option money,i said how much seller says 5-6k is fine.Help me with the contracts please or anything i maybe missing.A sandwich lease ,what do i sign between me and owner and what will i sign between me and buyer,and how to protect my interest after.I will be advertising the heck out of this property.Help me out guys,thank you all. I will use everything Michael said in the manual,1 year with buyer and go from there. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 17, 2012 Junior, so far, so good. Let's get this done. . .If you're doing this deal as a sandwich lease, the first thing you must do is verify the numbers to be sure there is enough of a spread between what you agree to pay the homeowner and what you expect to receive from your t/b. Increased profits also means increased risks. So do your homework first.The homeowner wants some option money. Obviously, the less you pay him the more you keep, so negotiate shrewdly. In any case, he doesn't get any cash from you until you collect it from your t/b. And if he wants $5K, you had better be collecting at least $10K. You never want to give the homeowner more than half of the option consideration.The agreement between you and the homeowner is the combination Lease With Option to Purchase Agreement. This is one agreement. The agreements between you and the t/b are separate. Be sure you are using the correct paperwork to protect your position in the deal.If you plan on being in the deal long term, you would be wise to complete and sign a memorandum of option with the county, so as to cloud the title. Share this post Link to post Share on other sites
